You Want To Have A Perpetuity That Will Pay 2 500 Per Year Forever You Found An Investment Offering A Guaranteed 3 5 1 (12.75 KiB) Viewed 24 times
You Want To Have A Perpetuity That Will Pay 2 500 Per Year Forever You Found An Investment Offering A Guaranteed 3 5 2 (17.98 KiB) Viewed 24 times
You want to have a perpetuity that will pay $2,500 per year forever. You found an investment offering a guaranteed 3.5% per year forever. How much will you need to invest today in order to receive your first perpetuity payment at the end of the year?
How much would you pay for an investment that will offer $10 in the first year, $20 in the second year, $30 in the third year, $40 in the fourth year, and then $100 in the fifth year. Your required rate of return on this investment is 12%.
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